chapter6 - Underemployment People seeking full-time paid...

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Unemployment Chapter 6 Labor force : All persons age 16 and over who are either working for pay or actively seeking paid employment Nonparticipant -people who are not employed or not actively seeking working are not considered part of the labor force Labor-force participation rate : The percentage of the working-age population working or seeking employment Unemployment: The inability of labor-force participants to find jobs Okun’s Law: 1 percent more unemployment results in 2 percent output Unemployment rate: The proportion of the labor force that is unemployed Unemployment rate = number of unemployed people Labor force Reasons for unemployment 1. Job leavers 10% 2. Job losers 54% 3. Reentrants 28% 4. New entrants 8% Discouraged worker : An individual who isn’t actively seeking employment but would look for or accept a job if one were available
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Unformatted text preview: Underemployment : People seeking full-time paid employment who work only part-time or are employed at jobs below their capability. Seasonal unemployment : Unemployment due to seasonal changes in employment or labor supply Frictional unemployment : Brief periods of unemployment experienced by people moving between jobs or into the labor market Structural unemployment : Unemployment caused by a mismatch between the skills (or location) of job seekers and the requirements (or location) of available jobs Cylical unemployment : The unemployment attributable to the lack of job vacancies, that is, to an inadequate level of aggregate demand Naturual rate of unemployment : Long-term rate of unemployment determined by structural forces in labor and product markets...
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